TSX little changed Dow closes above 17000 jobs data breezes past expectations

TORONTO – The Toronto stock market closed little changed Thursday even as job creation data from the United States blew past expectations and raised hopes for a stronger showing by the economy in the second quarter.The S&P/TSX composite index backed away slightly from Wednesday’s record-high close to decline 2.68 points to 15,207.11. The TSX was held back in part by gold stocks as bullion prices retreated in the wake of data from the U.S. Labor Department showing that the American economy produced 288,000 jobs in June.Economists had forecast that about 215,000 jobs were cranked out last month. There was also relief that the U.S. jobless rate edged down to 6.1 per cent from 6.3 per cent.Canadian employment data for June will be released July 11.U.S. indexes ran up smartly in a shortened session ahead of the Independence Day holiday Friday, when markets will be closed.The Dow Jones industrials closed above the 17,000-mark for the first time, up 92.02 points to 17,068.26, the Nasdaq rose 28.19 points to a 14-year high of 4,485.93 and the S&P 500 index gained 10.82 points to 1,985.44.The jobs data also persuaded analysts that damage to the U.S. economy in the first quarter was contained and second-quarter performance will be much more impressive. The economy contracted by 2.9 per cent in the first quarter, largely because of severe winter weather.“I think it will definitely reverse itself,” said Allan Small, senior adviser at HollisWealth.“The U.S. will continue to gain strength as the year moves forward and I think that will factor into our markets. A stronger U.S. dollar, a stronger economy, a rise in interest rates on the 10-year Treasury, I think these things will affect our economy, affect things like gold and the price of oil — commodities affected by a higher U.S. dollar.”The Canadian dollar was up 0.24 of a cent to 93.99 cents US as other data showed that Canada’s trade deficit with the world narrowed in May. Statistics Canada said the deficit came in at $152 million, down sharply from $961 million in April, thanks in large part to a strong showing by the auto sector.The strong jobs data and solid manufacturing reports from the U.S. and China earlier in the week boosted the Dow industrials 216.42 points or 1.28 per cent this past week. The Toronto market also headed for a strong gain, led by mining and financial stocks.The gold sector was a major weight on the TSX, down about 1.25 per cent as the jobs data pushed August bullion down $10.30 to US$1,320.60 an ounce.“When the U.S. economy is gaining strength, that’s when you see the price of gold drop,” added Small.“It was no coincidence that the price of gold reached US$1,900 when the economy was in the dumps. Now we’re seeing the opposite.”The tech sector was down 1.2 per cent. BlackBerry (TSX:BB) slipped 10 cents to $11.29 as the smartphone maker said that it is selling its research and development department in Germany to Volkswagen Infotainment, a subsidiary of the automaker that makes interactive technology built into vehicle dashboards.The energy sector slipped 0.22 per cent as August crude moved down 42 cents to US$104.06 a barrel.The TSX base metals sector led advancers Thursday, up 3.4 per cent while September copper was one cent higher at US$3.28 a pound.The financials sector was also a major gainer, up 0.33 per cent.Note to readers: This is a corrected story. An earlier version incorrectly said the 288,000 jobs were created in May, not June. AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email TSX little changed, Dow closes above 17,000, jobs data breezes past expectations by Malcolm Morrison, The Canadian Press Posted Jul 3, 2014 6:42 am MDT read more

Read More »

TSX higher for 5th straight day on soaring Valeant shares Nasdaq sets

by Linda Nguyen, The Canadian Press Posted Aug 9, 2016 9:29 am MDT Last Updated Aug 9, 2016 at 3:42 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email TSX higher for 5th straight day on soaring Valeant shares; Nasdaq sets record TORONTO – Traders looked to corporate earnings for direction Tuesday as the Toronto stock market advanced for a fifth straight day, while shares in Quebec drugmaker Valeant Pharmaceuticals soared.The S&P/TSX composite index climbed 45.61 points to 14,801.23. The health-care sector led advancers, jumping by six per cent, followed by notable gains in consumer staples and gold stocks.Valeant (TSX:VRX) saw its stock rise by nearly 25 per cent, adding $7.37 to $36.88, after the company confirmed that it plans on sticking to its earnings guidance despite reporting a wider second-quarter loss.The company’s share price is still far below its 52-week high of $333.44 a year ago, when it was one of Canada’s most valuable publicly traded companies.Meanwhile, indices in New York were mostly flat amid a dearth of economic news.The Dow Jones industrial average was up 3.76 points at 18,533.05 while the broader S&P 500 composite index was ahead 0.85 points to 2,181.74.The tech-heavy Nasdaq composite set an all-time record, settling at 5,225.48, a rise of 12.34 points.Todd Mattina, chief economist with Mackenzie Investments, says traders have been confident in North American stock markets lately because of easy monetary policies from global central banks.The notion that stimulus will continue to flow was supported again on Tuesday after China released weak consumer price figures, inciting expectations that the country may inject more stimulus into its economy.“There’s speculation that in China stimulus will be needed over the course of the year,” said Mattina.China’s consumer price index rose 1.8 per cent last month over a year earlier, slower than June’s 1.9 per cent.The July figure is the third monthly drop in a row since April, when the consumer price index reached its highest level since July 2014.It also was below the government’s three-per-cent inflation target. The news came a day after China reported exports fell in July and increased investors’ expectations of more stimulus measures from Beijing to soften the economy’s slowdown.Mattina noted that Chinese stimulus may help commodity prices, including copper, if the money goes towards major infrastructure projects.September copper contracts fell a cent to US$2.15 a pound, while December gold contracts rose $5.40 to US$1,346.70 an ounce. September natural gas fell 13 cents to US$2.61.The Canadian dollar was able to chalk up a gain, adding 0.23 of a cent to 76.20 cents US despite lower crude prices.The September crude contract was down 25 cents at US$42.77 per barrel as hopes of a possible production cap or cut from OPEC faded away.Crude prices had rallied on Monday, after the Organization of the Petroleum Exporting Countries said it will hold a meeting of oil ministers in September, two months ahead of schedule.The move was seen as unusual because the group rarely comes together outside of regularly scheduled meetings, leading investors to speculate about a possible impending output freeze.— With files from The Associated PressFollow @LindaNguyenTO on Twitter. read more

Read More »